When is an enterprise considered to be temporarily out of business? In case an enterprise registers to temporarily suspend business, do branches have to temporarily suspend it?

1. When is an enterprise considered to temporarily suspend business?

At what time is an enterprise considered to temporarily suspend business, based on Article 41 of Decree 01/2021/ND-CP, it is stipulated:

Legal status of the enterprise

Legal status of the enterprise in the National Registered Database Business registration includes:

1. “Temporary suspension of business” is the legal status of an enterprise that is temporarily suspending business according to the provisions of Clause 1, Article 206 of the Law on Enterprises. The date of changing the legal status “Temporary suspension of business” is the date the registered enterprise begins to temporarily suspend business. The end date of the legal status of “Temporary suspension of business” is the end date of the business suspension period that the enterprise has announced or the date the enterprise registers to resume business before the announced deadline.

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Thus, according to the above regulations, the time of business suspension is the date the enterprise registers to begin suspending business. This business suspension date is determined by the enterprise and clearly stated in the notice sent to the Business Registration Office.

2. If an enterprise temporarily suspends business, do its branches have to temporarily suspend it?

If an enterprise temporarily suspends business, do its branches have to temporarily suspend it? Pursuant to Article 66 of Decree 01/2021/ND-CP, it is stipulated:

Registering to temporarily suspend business and resume business before the announced deadline for enterprises, branches, and offices representative office, business location

1. In case an enterprise, branch, representative office, or business location temporarily suspends business or resumes business before the announced deadline, the enterprise sends a notice to the Business Registration Office where the enterprise, branch, representative office, or business location is located at least 03 working days before the date of suspension of business or resumption of business before the announced deadline. In case an enterprise, branch, representative office, or business location wishes to continue to temporarily suspend business after the end of the notified period, it must notify the Business Registration Office at least 03 working days before the date of continued business suspension. The business suspension period of each notice must not exceed one year.

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4. In case an enterprise registers to suspend business, the Business Registration Office updates the legal status of the enterprise and the status of all branches, representative offices, and business locations of the enterprise in the National Database on Business Registration to the status of temporary business suspension.

Thus, after being granted the certificate, the Business Registration Office updates the legal status of the enterprise and the status of all branches, representative offices, and locations. The business location of the enterprise in the National Database on Business Registration changes to a state of temporary business suspension.

That is, in this case, when the enterprise registers to temporarily suspend business, the branches must temporarily suspend business accordingly.

3. For enterprises temporarily suspending business, what documents must be accompanied with the notice?

For enterprises temporarily suspending business, the notice must be accompanied by the documents specified in Clause 2, Article 66 Decree 01/2021/ND-CP as follows:

Registering temporary suspension of business, resuming business before the announced deadline for enterprises, expenses branches, representative offices, business locations

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2. In case an enterprise temporarily suspends business, the notice must be accompanied by a resolution, decision and a copy of the meeting minutes of the Board of Members for limited liability companies with two or more members, partnerships, or of the Board of Directors for joint stock companies; Resolution or decision of the company owner for a one-member limited liability company on temporary business suspension.

3. After receiving the business registration dossier, the Business Registration Office issues a Receipt, checks the validity of the dossier and issues a confirmation that the enterprise, branch, representative office, or business location has registered to temporarily suspend business, and a confirmation that the enterprise, branch, representative office, or business location has registered to resume business before the announced deadline within 03 working days from the date of receipt of the appropriate dossier. regulations.

Thus, if an enterprise temporarily suspends business, the following documents must be accompanied by the notice:

– Resolutions, decisions and copies of meeting minutes of the Board of Directors for limited liability companies with two or more members, partnerships,

– Resolutions, decisions and copies of meeting minutes of the Board of Directors for joint stock companies part;

– Resolutions and decisions of the company owner for a one-member limited liability company.